The Company States Keep

Download or read book The Company States Keep written by Julia Gray and published by Cambridge University Press. This book was released on 2013-10-31 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book argues that investor risk in emerging markets hinges on the company a country keeps. When a country signs on to an economic agreement with states that are widely known to be stable, it looks less risky. Conversely, when a country joins a group with more unstable members, it looks more risky. Investors use the company a country keeps as a heuristic in evaluating that country's willingness to honor its sovereign debt obligations. This has important implications for the study of international cooperation as well as of sovereign risk and credibility at the domestic level.